Ex-Im Bank approves $900 million of loans to Pemex for US products

The US Export-Import Bank approved $900 million of 10-year direct loans to Petroleos Mexicanos, Mexico's national oil company, to support purchase of US goods.

The official US government export credit agency said that the loans consisted of $600 million for purchases to be used in the new projects of PEP, formerly known as the New Pidiregas Projects, which are 18 onshore and offshore oil and gas exploration sites, and $300 million for the Canterelli oil fields. Both activities involve work in and around the Bay of Campeche off the northern Yucutan coast, it noted.

It said that its financing help assure that US products would be competitive. Exports of engineering services, oilfield equipment, offshore platforms, drilling and upgrade services, and upgrade and rehabilitation services are expected to come from suppliers in Texas, Louisiana, Florida, Ohio, Pennsylvania, and other states, Ex-Im Bank indicated.

Pemex is its largest borrower, it pointed out. Since 1998, it has approved $8.3 billion of financing for Mexico's national oil company to buy US goods and services for its oil and gas exploration, development and processing projects. This included a $150 million small business facility in August supporting Pemex's purchases of equipment and services from US companies with 100 or fewer employees, the export credit agency said.

It noted that it authorized $1.5 billion of loans to support foreign purchases of US goods and services for oil and gas projects in fiscal 2008. During that year, the bank authorized a total of $14.4 billion in loans to support the purchase of $19.6 billion of US exports worldwide, it said.

Contact Nick Snow at nicks@pennwell.com